BOB EVANS

Bob Evans

Bob Evans

Introduction

Bob Evans Farms, Inc. is involved in the business of restaurants. The company also manufactures and distributes numerous food products such as sausages, bacons and hash browns. Bob Evans major business is in the US. It's headquarter is located in Columbus, Ohio. The company employs well over 45000 people and is considered to be one of the most stable restaurants in the US. It recorded a successful year (2012) in terms of revenues. Bob Evans financial statements suggest that its revenues in 2011 exceeded 1500 million dollars, which is an increase of 3% since 2008 (Appelbaum, 2011).

Bob Evans has more than 600 restaurants in US. Most of them are situated in Mid-Atlantic and Southeast regions of the United States. Breakfast is the prime product of these restaurants. Bob Evans specializes in various breakfast meals such as bacon, eggs and hotcakes. The restaurant is also famous for its French Toasts. Besides that Bob Evans also serves numerous traditional breakfasts to its customers. These include branded Sausage Gravy and Slow-Roasted Turkey Breast.

This essay will analyze:

The most important external environmental factors in the restaurant industry

The most important internal strengths and weaknesses of Bob Evans

Bob Evans competitive position and possibilities

External Environmental Factors

Political and Legal Factors

Most of the political factors usually affect business to a large extent. For a restaurant like Bob Evans, one of the most significant factors is the new health regulations of the current US political regime. Majority of the US and UK based restaurants have been seriously affected by these regulations.

Economic Factors

Overall economic conditions play an important role in the success of any restaurant. Recessions means that most of the people will not dine out and will prefer to eat at home. This financial instability in the industry has given rise to lot of opportunities for the retail industry on the other hand. Companies like Walmart are doing a successful business in the times of economic turmoil. Secondly, restaurant is a symbol of luxury, not a necessity that is the reason why people must have enough money to stay at such restaurants. In short restaurant industry is affected by inflation, higher taxes and decrease in buying power of the customers.

Social Factors

The social and cultural factors also play an important role in the success of any business entity and industry as a whole. For example in a health conscious environment like US and Europe, the restaurant should try its level best to offer foods which are highly healthy and made from products that are of good quality. Secondly, the people should also have the habit of dining out. In some societies people like to eat at home which becomes a hindrance to the success of a business.

Technological Factors

Majority of the restaurants are not much dependant of the use of technology. The trend has changed to some extent and the use of automated registration and CRM has helped to consolidate the overall working of a restaurant. In the restaurant industry, specialized equipment is the largest technological ...